I sold radio advertising and did a sports talk show for 36 years. I never stopped doing one or the other. I sold more than my share of endorsements for myself and other on-air personalities. I believe in the results you can generate for clients with testimonial ads and it’s the best way to realize your earning potential as an on-air personality. I felt like I was worth more than a station was willing to pay me as on-air person, so I went to the market to prove that.
I always thought I was overdue for a raise, so I went to the market for that each year. My income was usually about 30% endorsements and the rest salary and commission. I built in my talent fee for the endorsement and got the sales commission for the spots that went with it. I tried to make sure if I was charging $300 a month in endorsement fees that my schedule was $1200-1500 per month or more. I always felt like I was the best salesperson for me and the results the client received were always better with endorsement delivery spots.
I had multiyear endorsements in automotive, jewelry, sports bars, fine dining, pizza delivery, clothing, real estate, dry cleaning, painting, and hot tubs. Some of these relationships I still maintain to this day.
I always felt more on-air people should get into sales, at least to better sell themselves because salespeople will take the path of least resistance and profit. And in some cases, they don’t want to see the on-air person make more off an account than they do. A $300 endorsement fee is better than a $200 commission on a direct client sale of $1000.
So, why don’t more on-air people sell themselves?
I asked Mike Scott that same question. Mike retired as Region President/Gulf South Region for iHeartMedia a few years ago and now lives near me in Frisco, Texas, north of Dallas. Mike has taken the concept of on-air people selling endorsement contracts to a new level.
In fact, he has perfected it.
Scott calls it a cultural shift that needs to take place in more radio station groups. And the benefits can be enjoyed for all. Scott says, “endorsement partnerships renew 4x—6x better than non-endorsement deals and can last for years, withstand every business downturn, budget cut, or even a pandemic. “ Scott organized the on air talent in Mobile, Alabama and converted them into self-endorsement sellers. He has a system for client engagement and contact, follow up, how AE’s serve as agents, client entertainment, referrals, prospecting, elevator pitches, and contract renewals.
The iHeart cluster grew endorsement partnership revenue by 80% in 18 months.
Scott says, “unless your format is incredibly unique, there is no reason on air people should have less than 7-10 Partnerships—and spoken word formatted talent, especially ALL SPORTS, are almost limitless.” Scott doesn’t believe in short term endorsement deals. He calls them poison, “they don’t have enough time typically to create the FREQUENCY required. You really need 6 months + for the partnership to ‘season’.”
So, what are we waiting for?
I would be willing to bet that at least 20% of the on-air people in every building right now could get 7 deals and probably 40% of spoken word talent.
Get ahold of Mike for the details, the station investment is less expensive than agency commission, it all cash flows and you get a lot more for it. Mike’s email is mscott92258@outlook.com.
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
